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Revisions of Conventional Trade Theory
Q. Write an essay on the importance of a sound banking system in developing countries. Answer: Students must describe the phenomena of moral hazard as a part of their answer,
argument about fair distribution of income and gnp as a measurment of economic growth
definitions;types
It is argued that a tarriff may help promote employment in a single industry, but is not likely to help employment in general
Q. Explain the difficulties in naming the new European currency. Answer: Amongst the reasons: Maintenance the name ECU would be misleading the ECU depreciated sharply ag
Q. Should the IMF be abolished? Discuss. Answer: Arguments for eliminating the IMF must mention moral hazard and insistence on high interest rates and hasty structural
illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?
Role of foreign trade to the economic development?
Q . Now the monopolist discovers that it will export as much as it likes of its steel at the world price of $5/ton. It will thus expand for- export production up to the point whe
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